The economic cycle
- demand for labour is determined by demand for goods and services in the economy
- if labour shortages occur during high eco growth, employers have to compete for employees by offering higher wages
- Unions may also use stronger bargaining power to demand wage increases
- If there is an eco downturn (→ decreased demand for G/S)
- businesses are forced to reduce workforce size
- if labour shortages occur during high eco growth, employers have to compete for employees by offering higher wages
Structural change
structural change is :: a change in the nature and pattern of production of goods and services within an economy.
- In Last 50 years:
- employment in production industries has decreased significantly
- and employment in services industries have increased significantly
Globalisation
- Globalisation has increased the level of international competition in the marketplace
- wider pool of available labour
- especially with countries with lower costs & wage rates due to different economic status and/or government regulation
- international organisations like the EU & WTO have roles in trying to prevent trade based on immoral practices
- (such as child labour)
- international organisations like the EU & WTO have roles in trying to prevent trade based on immoral practices
- especially with countries with lower costs & wage rates due to different economic status and/or government regulation
- Also means that all businesses have to better attract and retain their staff,
- otherwise they can quit and go elsewhere lol